Basic Energy announces $5M share repurchase program
Basic Energy Services announced that its Board of Directors has authorized the repurchase of up to $5M of its outstanding shares of common stock from time to time in open market or private transactions, at the company's discretion. This authorization expires on June 4, 2020. The timing and actual number of shares repurchased will depend on a variety of factors including the stock price, corporate and regulatory requirements and other market and economic conditions. The stock repurchase program may be suspended or discontinued as determined by the Board of Directors. CEO T. M. "Roe" Patterson said, "The Board's authorization and our implementation of a stock repurchase program reflects our confidence in the long-term value of Basic's market position and financial performance, which have been severely discounted due to current conditions in financial markets. We expect the stock repurchase program to be effected without drawing on our existing ABL credit facility, and we expect our year-end cash balance to be approximately $55 - $60 million and total liquidity of approximately $130 - $135 million in the event we fully utilize the current repurchase authorization by December 31, 2019."